Common use of Notice of Security Interest Clause in Contracts

Notice of Security Interest. The Beneficiary, the Agent and the Issuer are entering into this Control Agreement to perfect, and to confirm the priority of, the Agent’s security interest in the Collateral. The Issuer acknowledges that this Control Agreement constitutes written notification to the Issuer of the Agent’s security interest in the Collateral. The Issuer agrees, upon its receipt of the original Credit (which the Beneficiary agrees to transmit forthwith to the Issuer), to promptly make a notation to reflect the Agent’s security interest in the Collateral upon the original Credit and thereafter return the original Credit to the Beneficiary. The Issuer also agrees to promptly make such other necessary entries or notations in its books and records to reflect the Agent’s security interest in the Collateral. The Issuer acknowledges that the Agent has control over the Collateral.